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ACCC alleges timber merchants' price-fixing cartel

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Adelaide against Auspine Limited, Geo J Bone & Sons Pty Ltd and Jag Timber Products Pty Ltd for alleged price fixing or attempted price fixing of timber estimating services in South Australia in contravention of the Trade Practices Act 1974

The ACCC has also instituted proceedings against a former employee of Auspine, Mr Frank McDonald; a director of Bone Timber, Mr Andrew Bone; and a director of JAG Timber, Mr Gary Daniel; for being directly or indirectly knowingly concerned in, or party to, the alleged contraventions by Auspine, Bone Timber and Jag Timber.

The ACCC alleges that during 2002, Mr McDonald on behalf of Auspine, Mr Bone on behalf of Bone Timber and Mr Daniel on behalf of Jag Timber made an arrangement, or alternatively arrived at an understanding, containing provisions including provisions that:

  • Auspine, Bone Timber and Jag Timber would no longer provide estimating services without charge but would pass on to the customer any charges incurred at cost
  • Auspine, Bone Timber and Jag Timber would procure or attempt to procure or induce other timber suppliers to make an arrangement, or to arrive at an understanding, containing a provision to the same effect, but including other timber suppliers, and
  • the parties gave effect to, or intended and attempted to give effect to the provision of the arrangement or understanding.

The ACCC is seeking orders including:

  • declarations
  • pecuniary penalties
  • injunctions
  • findings of fact
  • the implementation of a trade practices law compliance program, and
  • costs.

A directions hearing is listed for 7 September 2005 in the Federal Court, Adelaide.

Release # MR 201/05
Issued: 18th August 2005

Related topics on the ACCC website

Price fixing

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